LMAX Digital volumes continue to struggle as overall volume in the space suffers from the challenging market environment. Total notional volume for Tuesday came in at $123 million, 64% below 30-day average volume.

Bitcoin volume printed $69 million on Tuesday, 66% below 30-day average volume. Ether volume came in at $22 million, 75% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,267 and average position size for ether at 2,166.

Volatility has been anemic in 2022, and after seeing a little pick-up in recent weeks, we’re right back down to yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $540 and $64 respectively.

Indeed, market conditions remain exceptionally challenging in 2022. The trajectory of Fed policy and a series of implosions in the crypto space, culminating with the latest FTX blowup, have been the primary drivers behind the weakness.

Nevertheless, there are some positives that we continue to see despite the discouraging price action. One of the biggest positives is the ongoing interest and adoption from the institutional side.

Clearly these players recognize the longer-term value proposition and are positioning for the next big upturn. The names include Goldman Sachs and Morgan Stanley.

Goldman was out highlighting the need for more trustworthy, regulated players. Morgan Stanley doesn’t believe crypto is a fad and doesn’t think it’s going anywhere.

Technically speaking, the trend is still very much bearish, with bitcoin confined to consolidation, leaving risk for a fresh downside extension.

Fundamentally, so long as Fed policy is forced to lean more hawkish than dovish, there is indeed scope for additional weakness before finally bottoming out.